With the thrill that comes with an accepted offer and a “yes” from the lender, many homebuyers make the mistake of taking their enthusiasm straight to the mall or appliance store. Until the house is really yours, there still remain some hoops to jump through. Below you’ll find a list of actions to avoid during this crucial time of your home purchase.

Don’t make expensive purchases. You may be itching to turn your new living room into a home magazine cover, or celebrate your new castle, but stay away from expensive purchases like furniture, cars, appliances, or vacations until closing. Using plastic to buy new living room furniture could compromise your lending process by changing your numbers dramatically. It’s even a mistake to make those large purchases using cash. Lending Institutions are examining your cash reserve when considering your loan.

Don’t get a new career. Your recent job history should show consistency. Getting a new career beforeyou apply for a mortgage loan may not affect your approval at all. However, switching jobs during your approval process may affect your approval.

Don’t move finances around or change banks. Bank statements from recent months for accounts in your name (checking, savings, money market, and others) will be studied as the lending institution makes decisions regarding your approval. In order to eliminate fraud, lenders will need clear documentation of how you earn your living and where any additional wealth comes from. No matter the purpose, switching banks or transferring money could raise a red flag with the lender and slow down your approval process.

Don’t give your FSBO (for sale by owner) seller earnest money, made out directly to him. As a rule, your good faith deposit belongs to you, not the seller until the deal closes. Although some FSBO sellers might not understand this, your earnest money should go toward your closing expenses. Find a lawyer or other neutral party who is able to hold the funds or place them in a trust account until closing. The disposition of earnest money, if your transaction fails, should be specified in the contract with the seller.

At Platte River Mortgage & Investments, Inc, we answer questions about this process every day. Call us: (303) 433-9900.